Focus on intensive care may bolster sales 1-2% YoY to $590m (THB18.6b).
Bumrungrad Hospital’s (BH) earnings before interest, tax, depreciation and amortisation (EBITDA) margin could reach 36% in 2019 from 34% in 2018, according to a report by UOB Kay Hian (UOBKH).
“BH’s continued efforts to focus on intensive cases and invest in new medical technology and equipment would ensure that its margins would continue to rise,” analyst Kowit Pongwinyoo said in the report.
Bumrungrad Hospital’s popped the champagne after it saw its profits edge up 5% YoY to $31.04m (THB972m), whilst sales grew 2% YoY to $150m (THB4.7b) mainly on the return of international patients. Revenue from international patients increased by 8% yoy whilst revenue from Thai patients fell 5% yoy.
“Supported by the hospital’s policy to bolster margins by focusing on intensive care with the most up-to-date medical technology and equipment, patient volumes would increase and enhance BH’s sales and earnings,” Pongwinyoo added.
International patients started to return to BH in Q4 2018 after the end of the Ramadan period and with the easing of political tensions in many of the countries from which BH’s customers come from, the report noted.
With the developments at BH, UOBKH said it expects BH’s 2019 and 2020 sales to grow 1-2% YoY to $590m (THB18.6b) and $610m (THB19b), respectively. “The good margins will allow net profit to grow 10-11% in the next two years to $160m (THB4.6b) and $160m (THB5b), respectively,” Pongwinyoo noted.
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